tl;dr
U.S. consumer inflation cooled in April with the Consumer Price Index rising 2.3% year-over-year and a monthly increase of 0.2%, slightly below forecasts. Core CPI also rose 0.2% monthly, holding steady at 2.8% annually. Energy prices fell 2.4%, while shelter and food prices had modest gains. The da...
U.S. consumer inflation cooled to 2.3% year-over-year in April, accompanied by a monthly CPI increase of 0.2%, slightly below forecasts. The core Consumer Price Index (CPI), excluding volatile food and energy prices, also rose 0.2% monthly, remaining steady at 2.8% annually. Energy prices fell by 2.4%, which contributed to the softer inflation reading, while shelter and food prices experienced modest gains.
This data arrived during a temporary 90-day tariff freeze, allowing policymakers a clearer baseline to assess underlying inflation trends absent import price distortions. Since July 2023, Federal Reserve officials have held interest rates steady, awaiting further confirmation of inflation persistence. Short-term interest rate futures trimmed rate-cut expectations to around 56 basis points by year-end, down from over 100 basis points seen earlier in April.
Market reactions were muted following the inflation report. The 10-year Treasury yield edged lower to 4.44%, equity futures increased slightly, and notably, Bitcoin remained steady near $103,000. Bitcoin’s minimal movement, with a -0.5% change in the hour post-release, suggests reduced sensitivity to macroeconomic data or investor caution ahead of the Federal Reserve’s June policy meeting.
Overall, April’s inflation print aligns with a disinflationary trend, providing a clearer view of the U.S. economy’s baseline inflation before the tariff impact begins to take effect.